May 2024
Intermediate to advanced
688 pages
51h 31m
English
Content preview from Business Environment, 1st Edition by Pearson
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Chapter 2: National Income | 17 |
the NNP includes the undistributed profi ts of business units
because they represent a part of the current production, but they
are not available for use by individuals. From this discussion, it
is evident that:
Personal income = National income − Corporate income taxes
social security contributions − Transfer
payments − Undistributed profi ts
Personal Disposable Income
The term personal disposable income refers to the actual income
which the individuals can use for themselves. Direct taxes such as
income tax have to be paid out of the individual’s personal income.
Indirect taxes such as excise duty is ...
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